US Home Prices 2018 – House Price Growth by City – Best Bets

30 Nov US Home Prices 2018 – House Price Growth by City – Best Bets

S&P Case Schiller Homes Prices – Update on Housing 2017 – 2018

2018 looks like it’s going to be a more stable period for home prices from Boston to Miami to Los Angeles. Limited residential property, stable employment picture, and rising mortgage rates should keep things in balance in 2018.

What’s dampening that price flame is that prices are too high for Millennials (thus powering up the rental property investment market) and high mortgage rates.

Home prices are anticipated to increase 3.9 percent and existing home sales are forecasted to increase 1.9 percent to 5.46 million homes. Interest rates are expected to reach 4.5 percent due to higher expectations for inflationary pressure in the year ahead — Realtor.com Research

Case-Shiller reported a spate of very positive news regarding the state of the US economy and the housing outlook for 2017 to 2020. Housing is boosted by positive indicators coming from two separate reports published on Trading Economics, include:

US housing starts rose to a 9 year high in October 2017

US consumer sentiment rose to a 6 month high

US durable good orders rose

Job vacancies to fall 500,000 by 2020

US GDP will rise 2 Trillion by 2020

From the chart below, the Case-Shiller Home Price Index, building permits, housing starts, home sales, will rise slightly next year and significantly grow to higher levels in 2020. Home prices may rise another 10% by 2020 according to their forecast. Still a good time to look for houses for sale.

Screenshot courtesy of Trading Economics

Case-Shiller also sees the Fed raising interest rates and the US inflation rate will rise. These estimates may not take into account the intent of the Trump government. They see the US trade deficit worsening each year to a $10 billion imbalance by 2020. Perhaps with a growing economy, this stat will be moderated.

And from a reuters news report on the economy, Joel Naroff, chief economist at Naroff Economic Advisers is quoted as saying, “Everything seems to be moving in the right direction in the economy … The weak links are recovering and the strengths are staying strong. The Fed is not going to continue doing nothing.” That would mean he expects the Fed to raise interest rates, and that would push the US dollar to further highs.

Overall, it’s a good report that has something for consumers and entrepreneurs and business. Read the full forecast here.

The US housing market 2017 report is positive and this report from the Urban Land institute is positive too. Sure there are variables, especially in different regions and cities across the US, yet a lowered deficit sends a positive message to startups and small businesses that US businesses will have an easier time competing in the US. Looking to invest in rental income property in 2017?

Best Cities to Invest?

Cross reference this compiled list of cities with a previous post on best cities 2017 to invest in rental property. In this chart with data from Realtor.com and Kiplinger, I’ve highlighted what might be the best cities to discuss with your real estate investment advisor. I’m not advising anything, just to point out the advantages of diversifying your investment portfolio to cities that are strong and ones that could become strong.

Cities such as Springfield MA, Sacramento CA, or Detroit might pay off in 2020 to 2025. For rental income, Silicon Valley, Los Angeles, Dallas, San Diego, and Boston might be best picks. It might be a case of the usual suspects, but start here, work your way to the best zip codes and neighborhoods, types of house, employment growth, and migration patterns of Millennials, and you may have yourself a winner (real estate investment). Who knows which cities will rule after 4 years of the Trump overhaul of the US government and US economy?

From a report in the Pacific Coast Business Times, Mark Schniepp, director of the California Economic Forecast is quoted as saying that economic indicators do not point to a recession this year or next.

Nationwide, consumer confidence is near a seven-year high and corporate profits are trending up, which slumped prior to the Great Recession. And even though more people are buying cars and homes, household debt levels are tame, said The current seven-year economic expansion is old but it’s not running on fumes, he said.

Schiepp said “We really don’t have any imbalances or bubble concerns. Therefore, at this time, we don’t see any recession — none. If you were wondering about 2017 and all those blogs and articles (forecasting a recession), well forget about them.” Schniepp spoke to an audience at the Hyatt Regency in Westlake Village LA, during the 2016 Los Angeles County and Ventura County Economic Outlook.